German business confidence index Ifo lacking in May, future uncertain

FRANKFURT--The German Ifo business confidence fell in May, data showed on Friday, as companies become less optimistic about their future business development.

The Ifo economic institute's closely watched business climate index fell to 110.4 points this month from 111.2 points in April.

That is a slightly steeper fall than expected: analysts had been penciling in a fractional dip to 111.0 points.

Companies' assessment of their current business situation was "no longer as favorable as in April. Companies are also less optimistic about future business developments," explained Ifo chief Hans-Werner Sinn.

The sub-index measuring current business slipped to 114.8 points in May from 115.3 points in April.

At the same time, the outlook sub-index fell to 106.2 points from 107.3 points.